10 Characteristics of a Great Financial Advisor

What makes a good financial advisor “great”? Most people seek advisors who are competent, trustworthy, and strategic, but truly great advisors have much more to offer. Considering that a beneficial relationship with a financial advisor could last a lifetime, we believe it’s important to understand the characteristics of a good financial advisor when choosing a financial advisor who embodies more than the standard professional requirements. Here are 10 attributes you might consider when seeking the right advisor for you and your family: 

They have a vision and a mission. 
Great advisors focus on doing the right things and helping clients make informed decisions aligned with their goals and circumstances. 

They have a clear, defined process. 
Managing finances can be a complex task, and it can be easy to overlook a necessary step. In his book, The Checklist Manifesto, author Atul Gawande discusses errors of ignorance (mistakes people make because they don’t know what they don’t know) and errors of ineptitude (mistakes people make because they don’t properly use what they DO know). When situations are complex, it’s easy for an otherwise capable financial advisor to miss something – unless they follow a consistent process. They have a defined process designed to promote consistency and reduce the likelihood of overlooking important planning considerations, which is an important characteristic of a good financial advisor. 

They are great listeners. 
According to the Harvard Business Review, great listeners don’t talk when others are speaking; they show that they are listening by responding verbally or with facial expressions, and they can repeat what others have said, practically word for word. In addition, they create a safe environment for discussing difficult, complex, or emotional issues. Instead of immediately offering solutions, they seek to understand the problem first. How well does your financial advisor listen to your ideas or concerns? 

They are with their clients on the journey. 
There’s a saying that to understand the needs of another person, you should walk a mile in their shoes. However, because each person’s situation is different, great advisors walk alongside their clients. That way, when the client’s feet hurt, it’s likely the advisor’s do too. This type of empathy is another key characteristic of a good financial advisor and can help motivate them to listen deeply and look for thoughtful solutions. 

They are curious. 
Great advisors really get to know their clients and learn what’s meaningful to them. They understand that often, it’s not really about the money – it’s about what the money can do to help their clients pursue what’s important to them.  

They manage expectations. 
While it may sound dreamy to “get rich quick,” great advisors know it’s not realistic, and they work with clients to manage expectations around investment returns. They help their clients understand how the markets work and that a disciplined, long-term approach may help their clients remain focused on their long-term financial objectives. 

They don’t rest on their laurels. 
Great advisors realize their clients’ needs are ever-changing, and they seek opportunities for continuous improvement to better serve them. This could include embracing new technology, keeping up with best practices for security, or considering different asset classes to help clients pursue their financial goals. 

They follow a code of ethics. 
Great advisors place their clients’ interests first and work to either help mitigate any potential conflicts of interest as much as they can. They also communicate as much as possible to help clients understand risks, fees, and other information critical to their decision-making processes. This is another key characteristic of a good financial advisor. 

They are lifelong learners. 
No industry is static. Great advisors recognize the need for continuing professional development throughout their careers and pride themselves on staying up to date on the latest trends and industry best practices. They pursue advanced degrees and/or professional certifications to stay current. 

How to Choose a Financial Advisor 

Choosing a financial advisor involves more than just credentials or personality. When evaluating your options, it’s important to look for alignment in values, communication style, and long-term planning approach. 

As you consider how to choose a financial advisor, you may want to: 

• Ask about their planning process and areas of specialization 

• Understand how they are compensated and whether they act as a fiduciary 

• Evaluate how they communicate and involve you in decision-making 

• Consider whether their experience aligns with your financial goals 

At Savant, we believe choosing a financial advisor is about finding a long-term partner who prioritizes your best interests, follows a disciplined planning process, and provides transparent, personalized guidance to help you pursue your financial goals. 

Financial Advisor Evaluation Checklist

Our Financial Advisor Evaluation Checklist outlines the questions you should ask any advisor or firm you’re considering hiring. Using the Checklist, you can make side-by-side comparisons of potential firms designed to help you feel confident in taking the next step.

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This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.